Dampskibsselskabet Norden A/s · OMXCOP:DNORD
Dampskibsselskabet Norden A/s — DS Norden — Q1 2011 Earnings Presentation
21 slides from Dampskibsselskabet Norden A/s's earnings presentation, May 12, 2011
Slide 1: DS NORDEN 1st quarter results 12 May 2011
DS NORDEN 1st quarter results 12 May 2011 DS NORDEN 1st quarter results 2011 1
Slide 2: Today's Agenda
TODAY’S AGENDA NORDEN Group highlights Financial highlights Market expectations Full year financial guidance Q&A DS NORDEN 1st quarter results 2011 2
Slide 3: Q1 2011 Highlights
Q1 2011 HIGHLIGHTS Group financials Key messages USDm EBITDA • Group EBITDA down 10% on last year and on par with Q4 2010 when excluding one-off items Major • Dry Cargo earnings supported by high coverage settlements in a weak spot market - Cover still high at 86% • Tanker earnings above expectation
Slide 4: Q1 Financials
Q1 FINANCIALS Comments 2011 Q1 Financials (USDm) Dry Cargo EBITDA up 10% Q1 ’10 Q4 ’10 Q1 ’11 Y/Y % Q/Q compared to Q4 2010 % USD 9 million awarded in CM II Group 92 49 61 -34% 25% arbitration O/A Group -13 -10 -13 6% 31% Tankers positively affected by EBITDA 79 39 48 -39% 23% strong demand in
Slide 5: Fleet Values
FLEET VALUES Theoretical NAV of USD 2.2 bn. - DKK 275 per share Comparable vessel values down by 6% in Dry and down by 1% in Tanker USD/DKK down by 6,5% Value development Total theoretical NAV (USDm) DKK Charterparties w. purchase 2,158 options per share Net asset value per share 165 467 1,555
Slide 6: Dry Cargo Highlights
DRY CARGO HIGHLIGHTS Capacity and coverage, Dry Cargo, at 31 March 2011 2011 2012 2013 2014+ 2011 2012 2013 2014+ Gross capacity Ship days C osts for gross capacity (USD per day) C apesize 1,104 1,464 1,460 12,426 8,775 8,775 8,775 6,876 Post-Panamax 1,834 2,776 2,920 34,791 10,357 11,388 11,770 9,1
Slide 7: Dry Cargo Market
DRY CARGO MARKET Overall market subdued due to high deliveries Smaller vessel types earning relatively good rates Mil. dwt Pct Continue to expect lower Dry Bulk Deliveries 50 70% market averages in 2011 due 45 to high delivery schedule 60% 40 Demand drivers are still in 50% 35 place 30 40%
Slide 8: Tanker Market
TANKER MARKET Oil demand estimates unchanged – but some downside risk from higher oil price Limited fleet growth expected in MR and Handysize 2011-14 Global Oil Demand Mill dwt Clean Tanker Fleet Growth (mb/d) 75 12.0% 91 90.2 90 10.0% 10.0% 90 70 89.4 89 88.7 88.8 8.0% 88.4 65 88 6.0% 87 87 60
Slide 9: 2011 Full Year Guidance Unchanged
2011 FULL YEAR GUIDANCE UNCHANGED Outlook Key assumptions USDm Dry Cargo Tanker Total Guidance based on current capacity and coverage EBITDA 125-155 20-30 135-175 Only known and confirmed vessel sales are included in guidance Profit from Open capacity in Tankers employed at vessel sales - rate
Slide 10: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains certain forward-looking statements reflecting the management’s present judgment of future events and financial results. Statements relating to the remainder of 2011 and subsequent years are subject to uncertainty, and NORDEN’s actual results may
Slide 11: Thank You For Your Attention
THANK YOU FOR YOUR ATTENTION Q&A Session DS NORDEN 1st quarter results 2011 11
Slide 12: Back Up
BACK UP DS NORDEN 1st quarter results 2011 12
Slide 13: A Leading Global Tramp Operator
A LEADING GLOBAL TRAMP OPERATOR Dry Cargo Product tanker Capesize MR Post-Panamax Handysize Dry cargo offices Panamax Tank & Norient Product Pool offices Port Captains Site offices at yards Handymax One of the most modern fleets in our industry Global network of offices and port captains Very
Slide 14: Asset Light Business Model
ASSET LIGHT BUSINESS MODEL Active fleet can quickly be adjusted to demand and market conditions Fleet employment based on portfolio view Significant asset upside through purchase options Flexible fleet Coverage and customer focus Capacity Employment Sale and purchase Customer relations Con
Slide 15: Last 5 Years Performance
LAST 5 YEARS PERFORMANCE Earnings per share Profit Return onfrom Equityvessel sales: USD 70m USD 18.0 16.8 16.7 80% 16.0 70% 70% 14.0 60% 12.0 47% 50% 10.0 40% 8.0 5.8 30% 27% 6.0 5.2 4.1 20% 4.0 12% 13% 10% 2.0 0.0 0% 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 Cash flows, operations & invest
Slide 16: Financial strength = future profitable growth opportunities
Financial strength = future profitable growth opportunities Strong capital structure Gearing Net committed cash Strong focus on cash flow USDm Q1 2011 2010 generation Adjusted Net Interest Bearing 451 542 Assets* Cash in low-risk deposit T/C obligations** -1,997 -1,925 accounts and securities Ne
Slide 17: Dry Cargo Fleet Overview
DRY CARGO FLEET OVERVIEW NORDEN's Dry Cargo fleet at 31 March 2011 Post- Capesize Panamax Handymax Handysize Q1 2011 2010 Vessel type Panamax Size (dwt) >150,000 85-120,000 65-82,500 40-60,000 25-40,000 Length (meter) 289 245 225 190 170 Main cargoes iron ore, coal iron ore, coal iron ore, coal, iro
Slide 18: Tanker Fleet Overview
TANKER FLEET OVERVIEW NORDEN's Tanker fleet at 31 March 2011 MR Handysize Q1 2011 2010 Vessel type Size (dwt) 42-60,000 27-42,000 Length (meter) 180 170 Main cargoes fuel and fuel and heating oil, heating oil, gasoline, gasoline, veg. veg. oil, oil, diesel diesel Vessels in operation Owned vessels 4
Slide 19: Fleet Values and NAV
FLEET VALUES AND NAV Fleet values (before tax) at 31 March 2011 Calculated value of charter parties with purchase USD million Owned (active and newbuildings) and extension option Value of C arrying Purchase and charter party amount/ Market C harter extension and purchase Dry Cargo Number cost value*
Slide 20: Coverage and Capacity – Tanker
COVERAGE AND CAPACITY – TANKER Capacity and coverage, Tanker, at 31 March 2011 2011 2012 2013 2014+ 2011 2012 2013 2014+ Gross capacity Ship days C osts for gross capacity (USD per day) MR 5,187 6,257 5,850 46,014 13,129 12,374 12,441 9,097 Handysize 5,127 4,698 4,015 54,231 9,102 7,759 7,088 7,088
Slide 21: The Share (DNORD)
THE SHARE (DNORD) Master data Composition of shareholders Shareholder capital DKK 44,600,000 17,751 registrered shareholders Approx. 37% international ownership Number of shares and 44,600,000 shares of Approx. 57% effective free float denomination DKK 1 Classes of shares 1 Voting and ownershi